EU and EIB Unveil €200M Grants to Restore Water, Housing and Energy in Ukraine

The package marks another major milestone in Europe’s long-term commitment to Ukraine’s recovery, reconstruction, and future integration into the European Union.

At the ReBuild Ukraine Conference in Warsaw, the European Investment Bank (EIB), working in close cooperation with the European Commission and the Government of Ukraine, announced more than €200 million in new EU-funded grants dedicated to strengthening Ukraine’s essential services, rebuilding war-damaged infrastructure, and reinforcing the country’s energy resilience. The package marks another major milestone in Europe’s long-term commitment to Ukraine’s recovery, reconstruction, and future integration into the European Union.

The new grants support three critical sectors: water services, social and affordable housing, and energy resilience. All funds are tied to existing or recently approved EIB investment projects and are backed by the EU budget guarantees under the Ukraine Investment Framework, which itself forms part of the EU’s €50 billion Ukraine Facility. Together, these efforts reflect the EU’s coordinated Team Europe approach to Ukraine’s reconstruction.

Expanding Water Recovery and Modernizing Wastewater Systems

One of the most urgent components of the new package is a €25 million EU grant to complement the EIB’s ongoing water recovery loan. With Russia’s persistent attacks on critical infrastructure, thousands of Ukrainian communities continue to face disruptions to the availability of clean drinking water and proper sanitation. Many towns have outdated filtration equipment, broken pipes, or wastewater systems damaged directly by shelling.

The new investments will support:

• Emergency repairs to water distribution networks

• Modernized water purification and filtration plants

• Upgraded wastewater treatment systems

• Improved resilience against contamination and future attacks

The funding will directly strengthen Ukraine’s ability to provide reliable water access, reduce the spread of waterborne diseases, and ensure safe and sustainable sanitation for millions of residents.

A €50 Million Grant for Social Housing Reconstruction

Housing remains one of the most pressing social challenges in Ukraine. With millions of people internally displaced and countless homes destroyed or damaged, municipalities are under immense strain to provide safe accommodation.

A €50 million EU grant will support the EIB-approved Social Housing Reconstruction Program, which aims to create a modern, publicly owned system of affordable rental housing for communities hosting displaced families. The program will:

• Rebuild and expand public housing stock

• Develop energy-efficient and climate-resilient housing units

• Support municipalities in planning and managing affordable rental schemes

• Reinforce social stability by providing dignified shelter for displaced people

The investment also serves a long-term purpose: helping Ukraine shape a sustainable and inclusive housing model beyond the immediate recovery phase.

Strengthening Energy Resilience: €127 Million for Naftogaz

The largest component of the announcement is a €127 million EU grant to Naftogaz, complementing the EIB’s €300 million loan disbursed in October. With winter approaching and Russia continuing to target energy infrastructure, securing reliable energy supply remains vital for Ukraine’s survival and resilience.

The grant will help Naftogaz:

• Secure strategic gas reserves

• Protect heating systems across major urban centers

• Maintain electricity and heating throughout the winter

• Safeguard essential public services such as hospitals and schools

The grant is made possible through financial support from Norway, demonstrating strong international backing for Ukraine’s energy security. In return, Naftogaz has committed to reinvest an equivalent value into renewable energy projects and decarbonisation, signaling a strategic shift toward a greener energy future.

Advancing the European Flagship Fund for Ukraine’s Reconstruction

The EIB also welcomed progress on the European Flagship Fund for the Reconstruction of Ukraine, an EU-backed equity initiative expected to launch in 2026. The fund is being developed with the European Commission, and the EIB is considering participating as an anchor investor alongside France, Germany, Italy, Poland, and their development banks.

Once active, the fund is anticipated to play a transformative role by mobilizing large-scale equity investments in:

• Reconstruction projects

• Private-sector growth

• Infrastructure modernization

• Ukraine’s long-term path toward EU integration

Voices From Europe and Ukraine: A Shared Vision for Recovery

EIB Vice-President Teresa Czerwińska, overseeing operations in Ukraine, stressed the immediate and long-term significance of the new grants:

“By combining EIB loans with EU grants, we are helping Ukraine secure energy for the winter, keep water systems functioning, and provide safe housing for displaced families. These are critical services for daily life, and we are laying the groundwork for a more resilient infrastructure.”

European Commissioner for Enlargement Marta Kos highlighted the political message behind the support:

“Russia wants to break the spirit of the Ukrainian people. The EU is making sure that does not happen. Clean water, safe homes and reliable energy are the foundations of dignity and daily life.”

Ukraine’s First Deputy Minister for Development of Communities and Territories Aliona Shkrum underscored the human dimension of recovery:

“Recovery is not only about walls and pipes – it’s about dignity. When people have clean water and a roof over their heads, we rebuild trust and hope.”

Naftogaz CEO Sergii Koretskyi noted the vital timing of the support:

“This assistance is essential to ensuring stable gas supply during the heating season. We are deeply grateful to our partners.”

A Strong Signal of Long-Term Commitment

As Ukraine endures another winter of conflict, the EU and EIB’s latest package demonstrates sustained, coordinated support from Europe and its allies. By strengthening water, housing, and energy resilience, the initiatives announced in Warsaw directly address the humanitarian needs of today while laying the structural foundations for Ukraine’s rebuilding, modernization, and integration into the European community.